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Are You Considering Subletting Office Space?
The Process Of Subletting Office Space
Before you put word out there that you’re looking for someone to occupy a desk or space in your office, you must first check your lease agreement. Often landlords stipulate in the lease that no subletting is allowed. But if your landlord allows subleasing or even has changed their mind and decided to allow you to sublet, you should still be cautious and take precautions.
Caution When Subletting
Ensure that your landlord states clearly in the lease agreement what type of business they will allow to sub-lease part of the office. The last thing you want is to find a sub-tenant and then discover that your landlord opposes leasing to certain businesses. If for instance your landlord and the new sub-tenant run the same type of business, they would be in competition and that would be a conflict of interests.
Check List Before Subletting
You should keep this check list before subletting. Imagine that you find your sub-tenant but before they move in to your office space, or worse even if they move in only to then having to move out because you have failed to check on a few important aspects of sub-leasing. Please keep this check list and make sure you tick all the boxes before you go ahead with subletting your office space:
- Check your lease to ensure you’re allowed to sublease your space.
- Get your landlord to confirm which businesses are accepted in your office space.
- Have a solicitor look at the lease and make the necessary amendments in order for you to sub-let to the right person or company.
- Make checks on the potential new tenant so you know whom you’ll be sharing your space with.
- Agree on the terms and have a solicitor draft a lease agreement with the new tenant.
Many companies are downsizing and find themselves looking for someone to fill the space that’s been left vacant. Subletting office space is a great way to save on rent costs and utility bills. If you need help deciding what steps to take before leasing your office space, please give us a call for an informal discussion and advice. SG
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